Trump Stands by Fed Chair Despite No Rate Cut Amid Rising Inflation
US President Donald Trump continues to back Federal Reserve Chair Kevin Warsh despite no rate cut. In an Oval Office press conference, Trump praised Warsh as 'brilliant' and acknowledged that any decision on interest rates requires approval from the Fed's Board of Governors.
Trump's remarks came after the Fed left its benchmark interest rate unchanged at 3.50-3.75% for the second time since Warsh took over in May 2026. This decision is a departure from Trump's expectations, who has been calling for lower interest rates.
Fed Chair Warsh indicated that further interest rate increases remain an option due to rising core inflation. He stated, 'Central banks generally tighten policy when core inflation is rising... Conversely, when inflation declines, central banks tend to ease policy.'